Abstract:

The hitherto restriction to foreign capital inflow have been largely removed by the globalisation In line with theory on FDI, foreign investors seek to invest in countries where they have comparative cost advantage over the domestic industries. The impact of FDI on the growth path of developing countries has been of major concern over the years. Nigeria scholars in the last two decades have put up diverse views on the links between FDI and economic growth. While a few have concluded that FDI has unidirectional causal effect on  economic growth in Nigeria, others were of the view that economic growth has bidirectional causal effect on  FDI. This scenario leaves much to answer. .The study  while this discuss from another dimension employ Multivariate Granger causality techniques with lagged endogenous variables using Vector Autoregressive {VAR} technique to investigate the nature of causal relationship between FDI , Capitl intensity , labour quality and economic growth between 1981 and 2017 . The result noted a bidirectional Granger Causality between RGDP and capital intensity thereby suggesting improvement in capital intensity as a good policy to grow the economy. Equally FDI was found to have unidirectional causality running directly from FDI to RGDP, labour quality and Capital intensity respectively.  The study therefore recommend policy shift to improve the flow of FDI to Nigeria so as to grow the economy.